Government restrictions in China weigh on financial markets
The 10-year Treasury bond yield added 2.2 basis points on Friday but remained 1.4 basis points lower at the end of the week. Government bond yields and gold prices are moving in opposite directions.
The situation in the oil market remains the same. The global rise of COVID-19 cases makes the outlook for fuel demand worse. But thanks to an increase in demand for fuel in the summer, oil prices remain within the $70 a barrel range.
Asian stock indices are falling as fears of stricter regulation by Chinese authorities led to the fall of many Chinese stocks. China is tightening control over hidden local authority debt. China’s blue-chip index, the CSI 300, decreased by 2.4% to its lowest level in 10 weeks as the education, real estate, and technology sectors are concerned about stricter government regulations. There is also a fall of Chinese companies observed on the US stock market. But many analysts are confident that delisting of Chinese companies is technically impossible, so there is no need to worry about it. Relations between the US and China remain tense as talks between the US Undersecretary of State Wendy Sherman and Chinese Foreign Minister Wang Yi have reached an impasse. Meanwhile, curfews are planned to be imposed in Thailand and Vietnam due to the growing number of Delta strain cases.
S&P 500 (F) 4,411.79 +44.31 (+1.01%)
Dow Jones 35,061.55 +238.20 (+0.68%)
DAX 15,669.29 +154.75 (+1.00%)
FTSE 100 7,027.58 +59.28 (+0.85%)
USD Index 92.91 +0.08 (+0.09%)
News feed for: 2023.07.04
- Germany Ifo Business Climate Index (m/m) at 11:00 (GMT+3);
- US New Home Sales (m/m) at 17:00 (GMT+3).
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
